What interest rate did you get on your RHO?

[Dusty19]

Some forget, rates are factored by risk to lender. I see a lot of comments about “how’d you get x.x% approval when my credit is also 800++?!” It’s not all credit score and income dependent.

If two identical people walk into a bank/dealership with identical credit scores, identical history length, and identical incomes, one could walk out with 4.5% and the other with 5.5%.

Person A with 5.5% might have two open auto loans, a new mortgage, and high DTI on revolving credit while person B is a renter with minimal outstanding debt and very low DTI and is seen as less of a risk by the lender.

Took me 6 months working closely with our finance guy to learn that approval is not factored in a bubble and is very subjective.

Also - I’ve been privy to a few phone calls to underwriters when rates are shopped out. People sometimes discuss your personal finances and what that picture looks like on paper and even if you technically come back “approved” for 4.5% on criteria, the underwriter might think your a little suspect on paper and decide to bump you up.

As far as instant approval/online apps that are automated , I don’t know how those algorithms work, but I’d take the bet you’re always going to get back a higher rate as the binary logic needs to always favor the house on approval as a “just in case” - assuming a real underwriter isn’t putting eyes on these.

 

[Cautionary Tale]

Some forget, rates are factored by risk to lender. I see a lot of comments about “how’d you get x.x% approval when my credit is also 800++?!” It’s not all credit score and income dependent.

If two identical people walk into a bank/dealership with identical credit scores, identical history length, and identical incomes, one could walk out with 4.5% and the other with 5.5%.

Person A with 5.5% might have two open auto loans, a new mortgage, and high DTI on revolving credit while person B is a renter with minimal outstanding debt and very low DTI and is seen as less of a risk by the lender.

Took me 6 months working closely with our finance guy to learn that approval is not factored in a bubble and is very subjective.

Also - I’ve been privy to a few phone calls to underwriters when rates are shopped out. People sometimes discuss your personal finances and what that picture looks like on paper and even if you technically come back “approved” for 4.5% on criteria, the underwriter might think your a little suspect on paper and decide to bump you up.

As far as instant approval/online apps that are automated , I don’t know how those algorithms work, but I’d take the bet you’re always going to get back a higher rate as the binary logic needs to always favor the house on approval as a “just in case” - assuming a real underwriter isn’t putting eyes on these.

What you are describing can be obtained by getting a FICO scoring of some sort (there are several). Several banks and AMEX give them for free and the score will account for all listed above and give a more accurate idea of what an underwriter would use. i.e. someone with an 820 could have a FICO of 730. It rarely, or maybe never go the other way. All three bureaus have their own scoring too, but a high FICO is holy grail for the score chasers.

 

[yoda33073]

Were you putting money down? 60 months or 72? Seems a point higher than it should be.

I am consistently still seeing 6.5% interest. I would take 5.5% in a heartbeat (800+ credit, 72 months).

 

[sheepoppa]

I am consistently still seeing 6.5% interest. I would take 5.5% in a heartbeat (800+ credit, 72 months).

I got 5.4 for 48 mos through MD.

 

[OBYsRHO]

I had to negotiate the rates with my dealer financing. Was a little annoyed about it since I got a no hassle discount on my rho and I was a repeat customer. Started off at high 7s but eventually dropped to 5.69 at 72 months

 

[Kingsingh15]

I had to negotiate the rates with my dealer financing. Was a little annoyed about it since I got a no hassle discount on my rho and I was a repeat customer. Started off at high 7s but eventually dropped to 5.69 at 72 months

From mark dodge?

 

[MattH89]

I had to negotiate the rates with my dealer financing. Was a little annoyed about it since I got a no hassle discount on my rho and I was a repeat customer. Started off at high 7s but eventually dropped to 5.69 at 72 months

How did you negotiate it? You don't usually see that much leeway in underwriting.

 

[Dusty19]

What you are describing can be obtained by getting a FICO scoring of some sort (there are several). Several banks and AMEX give them for free and the score will account for all listed above and give a more accurate idea of what an underwriter would use. i.e. someone with an 820 could have a FICO of 730. It rarely, or maybe never go the other way. All three bureaus have their own scoring too, but a high FICO is holy grail for the score chasers.

True!

My statements are very anecdotal to be honest. I don’t have enough first hand experience in finance with underwriters to have an industry baseline statement for consumers. Just talking from my limited personal experiences. Not financial advice.

As stated before though, all lenders are not created equal. Some underwriters couldn’t care less about your FICO score, or any score at all for that matter depending on the situation. I’ve seen guys with very high income and an 810 FICO score who should qualify for Tier 1 rates, get bumped to Tier 2 rates because they have so many unsecured liabilities, no assets, etc. Underwriter completely disregarded their credit score and went off risk profile only. I believe all banks/underwriters, while similar, have subjective differences in financial risk models that they follow, so YMMV.

 

[OBYsRHO]

From mark dodge?

No my local dealership Mall of Georgia

 

[Dusty19]

How did you negotiate it? You don't usually see that much leeway in underwriting.

I had a dealer once put me on the phone with the bank that I was obtaining financing through, and the guy literally said “if you pay off the $5,000 you owe on your Kawasaki card today, I will drop your rate 1.5 pts”

I called and paid it off over the phone and had the card issuer fax over proof and my rate dropped from 3.5 to 2.

Almost everything can be subject to negotiation! Sometimes you just have to ask. The squeaky wheel usually gets the grease

 

[OBYsRHO]

How did you negotiate it? You don't usually see that much leeway in underwriting.

I think if you do financing at the dealership they will always try to make maximum money from you unlike if you go to a reputable credit union they normally give you the rate you qualify for. I did this because I got an extra 1% off invoice if I finance through dealer

 

[genxeration]

I had a dealer once put me on the phone with the bank that I was obtaining financing through, and the guy literally said “if you pay off the $5,000 you owe on your Kawasaki card today, I will drop your rate 1.5 pts”

I called and paid it off over the phone and had the card issuer fax over proof and my rate dropped from 3.5 to 2.

Almost everything can be subject to negotiation! Sometimes you just have to ask. The squeaky wheel usually gets the grease

3.5%?? 2%???! Man, this ain't 2020 . Just curious, who is providing rates that low? Appreciate it!

 

[Dusty19]

3.5%?? 2%???! Man, this ain't 2020 . Just curious, who is providing rates that low? Appreciate it!

This was 2012

 

[Joe86]

I'll just refinance with my local credit union for 4.5%

 

[Turbineguru]

Just got 4.79 from navy fed 72 months credit score above 800, very low DTI plays a huge part as others have stated

 

[Rmndrgn1]

I financed today with Navy Fed at 4.8% for 72 months.

I’m getting mine hopefully this week or Wednesday of next by the lastest. Did you do the financing online? I’m thinking about checking them out in case the company the dealership uses is too high. 805 credit score out of Texas

 

[fercho1531]

I’m getting mine hopefully this week or Wednesday of next by the lastest. Did you do the financing online? I’m thinking about checking them out in case the company the dealership uses is too high. 805 credit score out of Texas

If you have an account with Navy Federal, you have to go to them, it is impossible for the dealer to improve that. They gave me a 5.70 with a credit of 765, but I have only been in the country for 8 years, so I suppose that was the reason they didn't give me a 4.7 for 72 months.

 

[Rmndrgn1]

If you have an account with Navy Federal, you have to go to them, it is impossible for the dealer to improve that. They gave me a 5.70 with a credit of 765, but I have only been in the country for 8 years, so I suppose that was the reason they didn't give me a 4.7 for 72 months.

Awesome, thanks man!

 

[Clutch23]

Anyone getting comercial loans? Got quoted 9.9 for a well established company with perfect credit.

 

[DaveRho]

Anyone getting comercial loans? Got quoted 9.9 for a well established company with perfect credit.

I'm checking into this now. Picking up thruck next week.